Exemption

Discount earned on bills of exchange is exempted. But if anything is charged extra not in the form of discount, then it is taxable.

vishwam mandepudi

Qualified CA

★ 2K+

08-Jul-21 11:09

Discounting of invoices or cheques falls within the meaning of â??services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discountâ??. Such discounting is exempt from payment of GST, as such discounting is nothing but a manner of extending a credit facility or a loan. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST.

Sudha Reddy

CA Final

★ 20K+

08-Jul-21 12:43

Ok mam thank u so much

Thread Starter

Likhitha Sivani

CA Inter

★ 14K+

08-Jul-21 12:59

Thank u so much sir

Thread Starter

Likhitha Sivani

CA Inter

★ 14K+

08-Jul-21 12:59